RRSP return of contributions -

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Gyoung
Posts: 3
Joined: Sat Feb 13, 2021 1:57 pm

RRSP return of contributions -

Post by Gyoung »

As a naturalized American and Canadian Non Resident for the past 24 years the time has come that I need to educate myself in regards to my pension/RRSP. I read in one of the topics that the part described as "return of contribution" can be excluded from income. This may be more simple but i have no clue as to how this all comes about.

Yes I am reporting these Canadian accounts on a yearly basis.

Thank you in advance.
nelsona
Posts: 16793
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP return of contributions -

Post by nelsona »

You would first need to know what your RRSP was worth when you first became a US taxpayer (presumably 24 yrs ago).
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Gyoung
Posts: 3
Joined: Sat Feb 13, 2021 1:57 pm

Re: RRSP return of contributions -

Post by Gyoung »

Actually I have that in black and white.
nelsona
Posts: 16793
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP return of contributions -

Post by nelsona »

OK, so each year you withdraw income, you will include a prorated amount of the withdrawal based on value when you arrived in US vs. its value today,

Example: It was worth $1000 when you left and know it is worth $3000. You withdraw $300. $100 is not taxable, $200 is. You have now reduced the non-taxable portion to $900. you use the $900 and the new total value to come up with the taxable amount the next year you withdraw.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
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